INSUBCONTINENT EXCLUSIVE:
Wednesday asked Infosys to explain why it did not make a disclosure about a whistleblower complaint which alleged that the company's top
executives were following "unethical practices" to shore up profits through irregular accounting ways.On Tuesday, Infosys Chairman Nandan
Nilekani said the whistleblower complaint dated September 20 had been placed before the audit committee on October 10
There was an undated complaint which has also been placed before the committee.One of its board members had received the complaints on
September 30, according to Nilekani's statement submitted to the stock exchanges on Tuesday.Mr Nilekani had said that both the complaints
were placed before the company's non-executive board members on October 11, also the day when Infosys announced its second quarter
results."Infosys Ltd vide an announcement dated October 22, 2019, titled ''Statement'', submitted Statement attributable to Nandan Nilekani,
Chairman of Infosys Ltd, wherein it is mentioned that Infosys Ltd had received whistle blower complaints
However, it is observed that Infosys Ltd has not made any disclosures under Regulation 30 of Sebi (LODR) Regulations, 2015, w.r.t
receipt of whistleblower complaint mentioned in the announcement," the company said in a filing to the bourses on Wednesday.The exchange has
sought clarification from Infosys for "non-disclosure of the information about the whistleblower complaint", the filing said.According to
the BSE, a reply from the company is awaited.Following reports of whistleblower allegations, the IT major, on Monday, informed the stock
exchanges that it has received anonymous whistleblower complaints alleging certain unethical practices and that the same have been placed
before the audit committee.Against the backdrop of Mr Nilekani's statement on Tuesday and the company's filing to the bourses a day
before, the BSE has sought clarification.Mr Nilekani had also said the audit committee has retained law firm Shardul Amarchand Mangaldas -
Co to conduct an independent investigation into the issue.In the letter, dated September 20 and signed by ''Ethical Employees'', it was
alleged that CEO Salil Parikh as well as Chief Financial Officer Nilanjan Roy engaged in forced revenue recognition from large contracts not
adhering to accounting standards.The letter, addressed to the board, claimed that recent big deal wins carried negligible margins and that
Mr Roy directed certain people to make wrong assumptions to show margins.On Tuesday, shares of Infosys plunged over 16 per cent, wiping out
Law Firm has said it is preparing a class action lawsuit to recover losses suffered by Infosys investors in the US.In 2017, Infosys had
witnessed a protracted stand-off between its high-profile founders and the previous management over allegations of governance lapses and
issues relating to severance package doled out to former executives, including ex-CFO Rajiv Bansal.Following the tussle, then CEO Vishal
Sikka quit followed by some board members
Infosys co-founder Nandan Nilekani was then brought in as chairman to steer the company
Mr Parekh joined the company in January last year as the CEO.Infosys has also settled with Sebi the case of alleged disclosure lapses
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